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Summary:

Whether you see Apple’s tablet the iPad as the catalyst of a digital media revolution, or just another gadget that Steve Jobs wants you to spend your hard-earned cash on, it’s hard to avoid the black hole that is the iPad buzz this week. But beyond […]

Whether you see Apple’s tablet the iPad as the catalyst of a digital media revolution, or just another gadget that Steve Jobs wants you to spend your hard-earned cash on, it’s hard to avoid the black hole that is the iPad buzz this week. But beyond possibly affecting the digital consumption of books, magazines, blogs and newspapers, I think the iPad will have an effect on a less obvious market: home energy.

The home energy market is a nascent ecosystem that’s made up of: utilities that are trying get their customers to consume less energy, startups building smart energy software and energy dashboards that will manage energy data in the home and help customers consume less, large manufacturers dabbling in connected appliances, and investors looking for ways to make money (a dose of skepticism here).

If you’re never heard of the market, it’s because from a consumer perspective it really doesn’t exist yet. According to Texas-based consultants KEMA, 68 percent of Americans haven’t heard of the smart grid, and exuberance in the home energy market “should be tempered to account for the challenge of engaging large numbers of residential customers.”

The preliminary stage of the market is one reason why the iPad could possibly have such a large effect. As Glen Mella, the President and COO of Control4 — a home automation and energy management startup that created a free iPad app — put it to me in an interview yesterday, think of the millions of people that could suddenly have access to a power display with rich media for home energy management. “We’re excited to embrace the iPad as another way to bring home automation and home energy management to the mainstream,” explained Mella.

The iPad has a real chance of playing a key role in “the digital home,” a long-discussed market where consumers are supposed to use a fourth screen to manage home digital entertainment, security, lighting, and heating and cooling. In recent months home automation players like Control4 have added on energy management as another feature, (see Is Energy Management the Killer App For the Home Automation Market?, GigaOM Pro, subscription required).

But the iPad could offer a few unique characteristics specifically for home energy management in comparison to an energy-specific dashboard gadget — like those made by Tendril, EnergyHub and Control4 (yep they make a gadget too) — mobile interfaces with smaller screens like the iPhone, or a website on a computer. Those advantages include a large screen, the ability for rich media and the fact that the device can do an unlimited amount of other tasks. “People aren’t buying the iPad for energy, but now they have this sleek and capable energy device,” says Mella.

So, say iPad buyers do one day embrace home energy apps like Control4′s on the iPad, it could certainly change the newly forming energy management ecosystem. More specifically, it could cause stand-alone energy devices to stall. To that, Mella says “Sure the iPad could replace some of the sales, but let’s do what the consumer wants.”

Other entrepreneurs that make both energy management software and hardware have similar thoughts. Marco Graziano, CEO of energy management startup Visible Energy, which has an iPhone app for energy management and plans to make a native iPad app, explained to me in an email:

I never thought specialized displays were a good idea for monitoring energy consumption. They don’t have any sex appeal and are too expensive anyway as freebies for utilities to give away. We found that interactivity is really a plus when it gets to visualizing energy consumption and to engaging people in energy awareness. In this respect the iPad is a breakthrough.

Seth Frader-Thompson, CEO of energy management company EnergyHub, which makes both an energy dashboard that has rich media, and is also developing an iPhone app, says:

We think it’s important to offer consumers a choice of how they interact with their home energy management system. That includes dedicated devices like our Dashboard for people who don’t have a multi-purpose “Fourth Screen,” as well as apps for the iPhone and iPad, Android phones and tablets, and other platforms that gain significant market traction. Our key value is really in making software that makes personal energy management easy for consumers, and delivering that software in a way that’s accessible to as many people as possible.

The bottom line is that it’s still early days for these startups, which means that they can pretty easily adapt, change business models, and, say, start pushing more software than hardware, if a dominant energy hardware platform emerges. And if the iPad ever does help the energy management market break out into the mainstream, it will also mean that the energy management market has moved solidly into the domain of the consumer, as opposed to being a product distributed by a utility. That will ultimately mean a lot bigger market and a lot more opportunities for these startups.

  1. [...] How the iPad Could Disrupt the Home Energy Market Cleantech [...]

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  2. Hi Katie,

    There is apparently a big IF in “if the iPad ever does help the energy management market break out into the mainstream, it will also mean that the energy management market has moved solidly into the domain of the consumer, as opposed to being a product distributed by a utility,” but that seems to be unlikely. As you wrote earlier there may be other platforms developers trying to go mainstream.

    There is no need for IF as Smart Grid rollouts are based on a flawed thinking in the name of efficiency for the utilities, which should not be equated with the efficiency of the emerging whole Smart Power Service. In fact, the message of the tweet Super Grid: the Smart Grid that is Being Pushed http://bit.ly/cNO3xq makes it clear that customers should have the right to reject a Smart Meter.

    Another recent development that makes the IF unncesarry is the tweet “RT @PerfectPower: Whirlpool: Need to develop products that can respond in #smartgrid or not environment. Can’t wait for SG rollout #dctalks”

    I think utilities’ Super Grids will be generating a lot of value destruction. Do you still think that utilities as we know them have any chance to go to the mainstream market?

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  3. Hi Jose Antonio, I think ultimately they are two different markets, (consumer energy and utility needs) that will have different products and leaders.

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    1. Thank you very much Katie,

      I don’t understand what you mean by the “utility needs” market. I see instead a regulated (T&D) delivery only utility, in a compact with a responsibility to deliver electricity in exchange for tolls. Central and distributed generation and energy sales transactions will be in the open market.

      In order to serve customers, today´s utilities can be thought to have an old enterprise and an old grid subsystems. Ultimately customers will face only one market leader that satisfies a need for free choice to one stop integrated whole offerings energy service from the new enterprise subsystem.

      For details, please take a look at the EWPC article “A Single System & the Enterprise War (http://bit.ly/aGR8y1 ),” whose summary is “A single integrated emergent power service system is optimally structured into the enterprize and the grid subsystems, that are highly cohesive with lightly coupled interfaces. The enterprise subsystem is designed to enable an architecting war among Second Generation Retailers (http://bit.ly/8t94ZR ), while the (delivery only) grid subsystem remains regulated.”

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  6. I don’t care how smart the grid is. The compressor on my refrigerator and my freezer cycle on when they need to, not when the utility wants them to. And these are by far the biggest energy users in my house. And I am not stupid enough to do laundry in the middle of the day in a heat wave. “Home energy management” is a fantasy that business school types with no real knowledge of energy think hope make them rich. It won’t because the savings cannot support the required investment.

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